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Value-add opportunities abound in livestock sector

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Value-added opportunities abound in the livestock sector


Workers at a Kenya Meat Authority plant during the launch of the Kenya Meat Show on November 9, 2021. Photo | Sila Kiplagat | NMG

Kenya is home to one of the largest herds of cattle in Africa. However, the country is still a net importer of beef, and the deficit in beef trade is increasing.

This calls for modernizing the sector to make it more efficient and competitive. Investors interested in supporting this vital sector can take advantage of the various opportunities available along the value chain.

Most of the country’s beef is produced by the more than 10 million pastoralists and smallholder cattle ranchers in arid and semi-arid lands (ASALs). These producers depend on the livestock sector as their main source of livelihood.

Until now, pastoralists have struggled to engage effectively in commercial value chains. Their participation has been marred by their limited access to inputs and exposure to climate-related risks.

Increasing demand for meat in urban centers provides growth opportunities for the sector as well as a growing middle class that is increasingly interested in food safety and high-value products. There is also a small but growing export opportunity.

Gatsby Africa, a private foundation operating in Kenya, affirms that the sector has an important role to play in providing an inclusive and prosperous future for millions of vulnerable people in Kenya.

“Kenya has an opportunity to build a competitive and climate-resilient sector, and to be at the top of the climate agenda of other meat producing and exporting countries, both regionally and globally,” the report says.

He adds that the main question for Kenya is whether it is possible to modernize and improve productivity in the livestock sector in such a way that as many of the ten million pastoralists as possible can participate in and benefit from the sector.

Dr. John Wamahoe of Gatsby points to opportunities to provide the sector with adequate fodder. A prolonged drought has tested the resilience of livestock producers in arid and semi-arid regions, with most having to practice shifting grazing to cope with shortages of forage and water.

Dr. Wamahu says entrepreneurs — and even sponsors — can benefit from the rain, which has rejuvenated turf in many parts of the country. They could cut the grass and make hay that would feed the livestock during the dry parts of the year.

He adds that new investments can open new avenues to the market. An example is aggregator models such as farms and feedlots, which integrate pastoralists into the value chain. Another is the completion of fattening services that offer greater value to the sponsors. Another is tracking technologies that enhance transparency and quality.

The use of comprehensive feedlot and aggregation models can improve the quality and quantity of livestock handled.

Large-scale new private investment in processing capacity and the cold chain will increase product value and open up more efficient avenues of marketing.

The Gatsby Africa team aims to enhance the skills, capabilities and productivity of meat processors through technical assistance – gaining an in-depth understanding of consumer demand for different meat products.

Miriam Mouli, also of Gatsby Africa, points out that consumer awareness campaigns are needed to increase demand for high quality and safe meat.

She points out that the majority of those who cut meat in a butchery are not trained professionals.

Ms. Molly points out that professional butchers are trained to select specific cuts of meat according to customer preferences and extract greater use and value from the carcass.

Despite this added value opportunity, Kenya has no institute to train professional butchers, she says, adding that “most learn on the job.”

Ms. Molly notes that although Kenyans’ love of meat is well known, citizens who wish to train as professional butchers must leave the country. Most of them go to South Africa.

She confirms that there is value in hiring a professional butcher. “You get more value as a butcher and as a consumer,” she says.

The Gatsby Livestock Program is focused on supporting Kenya in developing a modern and competitive meat sector while creating models that maximize the participation of livestock producers and derive higher returns from the sector.

The program has four main ambitions:

• Improve access to and uptake of professional inputs and services among sponsors;

• Explore the use of mass animal production and aggregation models to improve livestock quality and quantity.

• Attract large-scale private investment in meat processing capacity and the cold chain to increase product value and open up more efficient avenues of marketing;

• Support the development, review and implementation of various livestock policies that will enable the transformation of the sector in a competitive, inclusive and flexible manner.

You can learn more about Gatsby’s work with the Kenyan livestock sector and the opportunities that transformation of the sector presents www.gatsbyafrica.org.uk.

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